7 'sleeper stocks' making investors rich now

Investors can’t help but think they’re chasing stocks that have been marching higher for years. But you might be overlooking some sleeper stocks that have been perking up only lately.

There are seven stocks in the Standard & Poor’s 500, including energy driller Newfield Exploration (NFX), gamemaker Electronic Arts (EA) and aluminum processor Alcoa (AA), that have done absolutely nothing or even fell over the past five years but that are rocking now, according to a USA TODAY analysis of data from S&P Capital IQ. These stocks are all up 30% or more this year.

Clearly, higher energy prices have helped to wake up some of these sleeping stocks. Three out of the seven stocks are in the energy sector, as the industry gets a lift from better pricing.

Take the example of Newfield. Shares of the crude oil and gas drilling companies had been a complete bust over the past five years, falling 33.4%, while the S&P 500 shot up 49%. But investors can ignore all that pain now, since the stock is up 73.5% this year, while the rest of the market is up 6.3%.

Another classic example is aluminum processor Alcoa. The stock has been such a dog over the past five years — falling 61% — that it was even booted from the Dow Jones industrial average. But investors who hung on this year are up 37%.

Alcoa’s chart really shows how it went from a sleeper to a beauty:

Chart source: MSN Money

But just because these stocks have shaken off their malaise doesn’t mean they’re stocks to buy now. Just one, utility NRG Energy, gets S&P Capital IQ’s highest “buy” STAR rating of 5. The rest are rated “neutral” or lower.

Sometimes it’s best to avoid people, and stocks, who have been awakened from a long slumber.

Below are the seven S&P 500 companies that are down over the past five years but up 30% or more this year: